The Unbearable lightness of Budget 2007-08

Indians wait for February 28, when the finance minister presents a bulky document, popularly known as the annual budget, before the Lok Sabha. Yesterday too began with hearts beating faster and the stock markets beating themselves down. Who’s coming? Who’s coming? P. Chidambaram’s long foreplay ended in a sigh, so empty one could hear his starched dhoti’s creases crumple under his weight. When the wait was over India had another lifeless budget betraying a total lack of imagination. It was yesterday once more.

Wallet wise, these are extraordinary times. Indians had never had it so good with the economy in the fast lane. The poor Indians had never had it so bad either, at least in recent times, with their monthly expenses racing past their monthly budget. Those earning in daily wages don’t watch budget-shajjat, they have to earn their bread. It’s the Great Indian Middle Class that suffers the live telecast and its effects. Old habits die hard.

In the days before India surrendered to the market forces, the annual budget did decide how we lived and died. But, then, the government also decided what car you drove, what rice you ate and what poison you drank. No longer, apart from controlling what TV channels you see, the government has outted itself. But the middle class fascination in the annual budget has not died yet. The budget, alas, is dead meat:

I Want Your Tax
If you are among the salaried class, this budget brings you no relief. You will continue to pay through your teeth. But don’t worry, the government is not killing the golden goose yet. Predictable. That’s what boring budgets are. Your tax exemption limit is raised by Rs 10,000 to Rs 110,000. The increased education cess will take care of that half-hearted smile on your face. Rob Ramalingam to Pay Palaniappan. Simple, da! If you get ESOPs, it will get hit by the lunatic fringe benefit tax.

Cheap Thrills
Some things catch the government’s imagination during Budget time. And TV channels and newspapers immediately announce they’ll become cheaper. Nothing of that sort will happen to diamonds, I bet. The service tax on polishing diamonds has been cut. It will however save the diamond cutting-polishing industry in Gujarat. Cheap Chinese labour was threatening to take that business out. Slashing excise on watch dials doesn’t make watches any cheaper. Bio-diesel will be exempt from excise. Huge favour! Try finding bio-diesel in the city. The normal diesel and petrol prices will not be reduced despite an excise duty cut on auto fuels. That’s to protect the government-owned petroleum companies. And by the way your dog’s food got cheaper.

Expensive taste
Mr Chidambaram wants you to have healthy lungs, so the excise on cigarettes goes up. How original! Do not expect cigarette sales to go down due to the duty. Import duty on private aircraft goes up. If you are among those who import their own flying machines, we are sure a lakh here and there won’t pinch.

Happy politicians/bureaucrats
Rajiv Gandhi had famously said that 85 per cent of the money meant for rural development disappeared before it reached the villages. He didn’t name the politician-bureaucrat-contractor nexus. Because he knew that we knew. This year government’s expenditure would rise by a whopping 21 per cent. It warms our hearts to know that the government will expend Rs 680,521 crore to meet social sector commitments and enhanced defence needs. It will make warmer the hearts of the nexus that Rajiv Gandhi, a decent man, didn’t name. A budget, cut for them!

Healthy, happy life
The good-for-your-heart sunflower oil may become cheaper after the excise duty cut. Good news. The Health and Family Welfare Department has got a good raise, nearly 22 percent. The government will spend Rs 15,291 crore on this sector. May the corrupt get herpes if they try to take their cut from money meant for controlling HIV. The government will also spend more on art and culture. So will you. Buying and selling art will attract capital gains tax.

Same middle ko finger
This annual financial finger doesn’t poke the rich. The rich don’t worry about marginal cuts and taxes. The poor is too poor to be taxed. And too fisted to even bother. The middle class gets the poke and worse, it knows it’s getting it.